The Influence of Financial Literacy and Transparency on Budget Management in the Vote Counting Committee
Abstract
The current research examines the impact regarding financial literacy and transparency on budget management within Voting Organizing Committees (PPS) in Donggala Regency, Indonesia. A quantitative approach is employed, involving a census of 501 PPS members from 167 subdistricts. Data is gathered via structured surveys and assessed using multiple linear regression in SPSS software. The analysis includes instrument validation, reliability testing, and classical assumption diagnostics such as normality, multicollinearity, and heteroscedasticity tests. Hypothesis testing is conducted through t-tests and F-tests, with model explanatory power assessed using the coefficient of determination (r2). The findings reveal that financial literacy and transparency both significantly enhance budget management, accounting for 78.1% of the model’s explanatory power. Specifically, increased financial literacy enables PPS members to plan, allocate, and report budget usage effectively, while transparency enhances accountability and deters misuse through open financial disclosures. The study’s implications are twofold: theoretically, it supports Public Financial Management and Agency theories, highlighting the importance of competence and openness in public budget administration; practically, it calls for integrated training programs to enhance financial skills and transparency in electoral governance. These results contribute to improving democratic integrity and public trust in electoral processes.
References
Agha, H., & Khan, M. A. (2023). Financial Literacy and Investment Intention in Financial Assets: A systematic Literature Review Synthesis. Journal of Policy Research, 9(3), 213-22. https://doi.org/10.61506/02.00108.
Akitoby, M. B., Cui, M. L. Q., Domit, S., Meng, J., Slavov, M. S. T., Suphaphiphat, M. N., & Zhang, H. (2020). Improving Fiscal Transparency to Raise Government Efficiency and Reduce Corruption Vulnerabilities in Central, Eastern, and Southeastern Europe. International Monetary Fund.
Akmal, A., Gauld, R., & Penno, E. (2021). Transparency in healthcare reporting: the case of external contractors and consultants in New Zealand’s healthcare system. International journal of health policy and management, 11(9), 1642.
Appleman, L. I. (2016). Local Democracy, Community Adjudication, and Criminal Justice. Nw. UL Rev., 111, 1413.
Coates IV, J. C. (2014). Cost-benefit analysis of financial regulation: Case studies and implications. Yale LJ, 124, 882.
Baldissera, J. F., Dall’Asta, D., Casagrande, L. F., & Oliveira, A. M. B. D. (2020). Influência dos aspectos socioeconômicos, financeiro-orçamentários e político-eleitorais na transparência dos governos locais. Revista de Administração Pública, 54, 340-359.
Brahimi, M. A., & Leperlier, T. (2023). Quantitative Methods in Intellectual History. In The Routledge Handbook of the History and Sociology of Ideas (pp. 100-115). Routledge.
Chaity, N. S., Kabir, S. B., Akhter, P., & Bokhari, R. P. (2024). How financial literacy impacts financial well-being: The influence of financial and technical efficacy. International Journal of Economics and Financial Issues, 14(2), 207-217.
Chandler, Nathan, and I Lynn E Davis. n.d. THE DRIVERS OF INSTITUTIONAL Exploring Components of Trustworthiness.
Claassen, C., & Magalhães, P. C. (2022). Effective government and evaluations of democracy. Comparative Political Studies, 55(5), 869-894.
Deng, S., Peng, J., & Wang, C. (2013). Fiscal transparency at the Chinese provincial level. Public Administration, 91(4), 947-963.
Enciso, R. S. P., Deza, S. M. A., Mamani, O. A., Vargas, M. G. M., & Pachas, H. L. F. (2024). Public Management for Local Development: Perception from the Administrative Area of a Municipality in Peru. F1000Research, 13, 113.
Erjavec, E., & Rac, I. (2023). Improving the quality of CAP strategic planning through enhancing the role of agricultural economics. EuroChoices, 22(2), 71-76.
Fabbri, A., Santos, A., Mezinska, S., Mulinari, S., & Mintzes, B. (2018). Sunshine policies and murky shadows in Europe: disclosure of pharmaceutical industry payments to health professionals in nine European countries. International Journal of Health Policy and Management, 7(6), 504.
Gačić, J., Milojević, S., Knežević, S., & Adamović, M. (2023). Financial Literacy of Managers in Serbian Health Care Organizations as a Path to Sustainability. Sustainability, 15(7), 6113.
Gallego-Losada, M. J., Montero-Navarro, A., Gallego-Losada, R., & Rodríguez-Sánchez, J. L. (2024). Measuring financial divide in the rural environment. The potential role of the digital transformation of finance. International Entrepreneurship and Management Journal, 20(4), 2791-2810.
Gelsomino, L. M., Sardesai, S., Pirttilä, M., & Henke, M. (2023). Addressing the relation between transparency and supply chain finance schemes. International journal of production research, 61(17), 5806-5821.
Grossman, G., Michelitch, K., & Prato, C. (2024). The effect of sustained transparency on electoral accountability. American Journal of Political Science, 68(3), 1022-1040.
Harbinska-Rudenko, A., Danchuk, I., & Dubrova, A. (2023). Legal Regulation of Budget Control as a Type of Management Activity in the Budget. Науковий вісник Ужгородського національного університету. Серія: Право, 2(74), 43-47.
Harker, C., & Horton, A. (2022). Financing prosperity by dealing with debt. UCL Press.
Henager, R., & Cude, B. J. (2016). Financial Literacy and Long-and Short-Term Financial Behavior in Different Age Groups. Journal of Financial Counseling and Planning, 27(1), 3-19.
Jadara, S. M., & Al-Wadi, M. (2021). The Roles of Transparency and Accountability in Reducing Administrative and Financial Corruption. Public Policy & Administration/Viesoji Politika ir Administravimas, 20(2).
Jamal, J., & Enre, A. (2023). Konstruksi Agency Theory untuk Meminimalisir Asymmetry Information dalam Teori Keuangan Syariah Perspektif Tabligh. POINT: Jurnal Ekonomi dan Manajemen, 5(2), 163-171.
Jastrzębska, M. E. (2020). Transparency of information contained in the state budget from the view of utility for the citizen. Optimum. Economic Studies, 101(3), 3-14.
Kargol-Wasiluk, A., & Wildowicz-Giegiel, A. (2018). The quality of public finance in the light of fiscal governance concept: implications for the European Union countries. Equilibrium. Quarterly Journal of Economics and Economic Policy, 13(3), 411-426.
Kirya, M. T. (2020). Promoting anti-corruption, transparency and accountability in the recruitment and promotion of health workers to safeguard health outcomes. Global health action, 13(sup1), 1701326.
Kohler, J. C., & Bowra, A. (2020). Exploring anti-corruption, transparency, and accountability in the world Health organization, the United nations development programme, the world bank group, and the global fund to fight AIDS, tuberculosis and malaria. Globalization and health, 16, 1-10.
Kwon, O. J. (2022). Tracing two faces of extended visibility: a bibliometric analysis of transparency discussions in social sciences. Quality & Quantity, 56(6), 4711-4727.
López, J. M., & Olivares, B. (2016). El nuevo marco europeo de supervisión bancaria. El papel del Banco de España. Revista española de control externo, 18(52), 103-123.
Lupiana, F., & Purwanti, A. E. (2023). Peran Koperasi Kredit Indonesia Terhadap Penguatan Literasi Keuangan dan Perbaikan Perilaku Keuangan. Jurnal Ilmiah Manajemen, Ekonomi Dan Bisnis, 2(2), 37-49.
Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss journal of economics and statistics, 155(1), 1-8.
Mancebón, M. J., Ximénez‐de‐Embún, D. P., Mediavilla, M., & Gómez‐Sancho, J. M. (2019). Factors that influence the financial literacy of young Spanish consumers. International Journal of Consumer Studies, 43(2), 227-235.
Manik, F., Rengifurwarin, R., & Madubun, M. (2024). The Role of Technology in Internal Oversight of Public Administration: Improving Efficiency and Transparency. MSJ: Majority Science Journal, 2(4), 58-63.
Marques, M. F. (2022). O Controle Interno E Externo Na Administração Pública. Revista Científica Semana Acadêmica, 10(223), 1-29.
Marshall, M., Kirk, D. S., & Vines, J. (2016, May). Accountable: Exploring the inadequacies of transparent financial practice in the non-profit sector. In Proceedings of the 2016 CHI Conference on Human Factors in Computing Systems (pp. 1620-1631).
Mawad, J. L., Athari, S. A., Khalife, D., & Mawad, N. (2022). Examining the impact of financial literacy, financial self-control, and demographic determinants on individual financial performance and behavior: An insight from the Lebanese Crisis Period. Sustainability, 14(22), 15129.
Montalván, R. A. A., & Mozo, H. P. B. (2021). La transparencia en la administración de los recursos públicos. Ciencia Latina Revista Científica Multidisciplinar, 5(4), 5526-5539.
Moretti, L., & Suzuki, T. (2016). Strategic transparency and electoral pressure. Journal of Public Economic Theory, 18(4), 624-641.
Munawar, S. (2023). Effect of Financial Literacy on Financial Decision and Consumer Behavior. Pakistan Journal of Humanities and Social Sciences, 11(2), 2570-2582.
Musau, S. (2022). Efficient Public Financial Management for Effective Governance and Sustainable Urban Development. Journal of Public Policy and Administration, 7(1), 21-30.
Notes from the Editors: Transparency. (2024). American Political Science Review, 118(1), V–VI.
Panos, G. A., & Wilson, J. O. (2020). Financial literacy and responsible finance in the FinTech era: capabilities and challenges. The European Journal of Finance, 26(4-5), 297-301.
Pariag-Maraye, N., Soobaroyen, T., Mooneeapen, O., & Panchoo, O. (2022). Evaluating NGO accounting and reporting practices in a developing economy: The case for reforms. Journal of Public Budgeting, Accounting & Financial Management, 35(1), 73-94.
Periansya, P., Muamar, P., & Aryani, Y. A. (2023). Factors Influencing Financial Management of Village Fund Allocation: Study in Lubai Ulu District. International Journal of Finance Research, 4(3), 196–207.
Piatti-Fünfkirchen, M., & Schneider, P. (2018). From stumbling block to enabler: the role of public financial management in health service delivery in Tanzania and Zambia. Health Systems & Reform, 4(4), 336-345.
Pokhrel, S. (2024). Hubungan Antara Mindfulness Dengan Tingkat Stress Akademik Pada Mahasiswa Fakultas Ilmu Keperawatan Universitas Islam Sultan Agung Semarang. Αγαη, 15(1), 37-48.
Reckers-Droog, V., Enzing, J., & Brouwer, W. (2024). The role of budget impact and its relationship with cost-effectiveness in reimbursement decisions on health technologies in the Netherlands. The European Journal of Health Economics, 25(8), 1449-1459.
Roigé Montornés, N., Pardo Bosch, F., & Pujadas Álvarez, P. (2024). Achieving sustainable goals using an effective budget-allocation multicriteria mives model: case study of a Spanish water utility company. Water Resources Management, 0123456789
Rozhko, О. D. (2017). The formation of new public finance management system within the framework of modern theory of public finance. Innovative Solution in Modern Science, 9(9).
Shawe, R. (2023). Budget and Organization Management. Open Journal of Business and Management, 11(3), 910-919.
Silwal, S. (2023). Transparency in Financial and Fiscal Affairs at Municipal Level: The Lessons from the Gandaki Province, Nepal. Dhaulagiri Journal of Contemporary Issues, 1(1), 1-6.
Slough, T. (2024). Bureaucratic quality and electoral accountability. American Political Science Review, 118(4), 1931-1950.
Stolper, O. A., & Walter, A. (2017). Financial literacy, financial advice, and financial behavior. Journal of business economics, 87, 581-643.
Subha, M. V., & Priya, P. S. (2014). The emerging role of financial literacy financial planning. International Journal of Innovative Science, Engineering & Technology, 1(5), 400-408.
Vasylieva, T., Kasperowicz, R., Tiutiunyk, I., & Lukács, E. (2023). Transparency and trust in the public sector: Targets and benchmarks to ensure macroeconomic stability. Journal of International Studies, 16(4).
Vian, T. (2020). Anti-corruption, transparency and accountability in health: concepts, frameworks, and approaches. Global health action, 13(sup1), 1694744.
Vicente, C., Benito, B., & Bastida, F. (2013). Transparency and political budget cycles at municipal level. Swiss Political Science Review, 19(2), 139-156.
Wagner, M., Samaha, D., Casciano, R., Brougham, M., Abrishami, P., Petrie, C., ... & Tringali, M. (2019). Moving towards accountability for reasonableness–a systematic exploration of the features of legitimate healthcare coverage decision-making processes using rare diseases and regenerative therapies as a case study. International Journal of Health Policy and Management, 8(7), 424.
Wishnia, J., & Goudge, J. (2021). Strengthening public financial management in the health sector: a qualitative case study from South Africa. BMJ Global Health, 6(11), e006911.
Wood, A. K., & Grose, C. R. (2022). Campaign finance transparency affects legislators’ election outcomes and behavior. American Journal of Political Science, 66(2), 516-534.
Xue, R., Gepp, A., O'Neill, T. J., Stern, S., & Vanstone, B. J. (2019). Financial literacy amongst elderly Australians. Accounting & Finance, 59, 887-918.
You, J. S. (2012). Budget Transparency and Participation in South Korea. chapter in Open Budgets: The Political Economy of Transparency, Participation, and Accountability, edited by Sanjeev Khagram, Archon Fung, Paolo de Renzio (Brookings Institution Press, 2013), paper delivered at the Harvard's Ash Institute (February 2011).
Yuharmafitri, Y. (2023). Analisis Implementasi Regulasi Laporan Sumbangan Dana Kampanye pada Pilkada Gubernur dan Wakil Gubernur Provinsi Sumatera Barat Tahun 2020 (Doctoral dissertation, Universitas Andalas).
Zai, S., Hulu, P. F., Bate’e, M. M., & Bu’ulolo, N. A. (2024). The Effect of Financial Literacy on Financial Behavior of Micro, Small and Medium Enterprises (SMEs) in Ulugawo District, Nias Regency. Golden Ratio of Data in Summary, 4(2), 457-466.
Zainuri, A. (2023). Analyzing Good Budget Management Principles at the General Election Commission. Interdisciplinary Social Studies, 2(5), 1975-1987.
Zeng, W., Yao, Y., Barroy, H., Cylus, J., & Li, G. (2020). Improving fiscal space for health from the perspective of efficiency in low-and middle-income countries: What is the evidence?. Journal of Global Health, 10(2), 020421.
Copyright (c) 2025 International Journal of Science and Society
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
.png)
.jpg)
.png)
.png)
.png)
.png)
1.png)
.jpg)
-modified.png)
-modified.png)
-modified.png)
